Brexit Deal Could Accelerate Interest Rates – What’s Next for GBP/USD?

Posted Friday, November 2, 2018 by
Arslan Butt • 1 min read

Yesterday, the Bank of England intimated there could be a faster pace of interest rate hikes if the UK manages a smooth exit from the European Union. Although the Bank held rates constant at 0.75% this month, its latest estimates hint that rates could accelerate to 1.5% over the next three years.

In response, the GBP/USD took a dramatic bullish turn. On the 2-hour chart, the cable violated the double top resistance level of $1.2915 to enter a new bullish range. The pair is likely to face a strong resistance near $1.3035 which is extending by an intraday high of November 1. The bullish breakout can extend bullish rally until $1.3065 today.